Futures trading platform BitVC has altered the way it handles forced liquidation risk management, replacing the 'socialized system losses' method that was sometimes unpopular with users.
The platform, a subsidiary of Chinese exchange Huobi, says it will implement a new method called 'automatic counterparty deleveraging'.
A BitVC representative said the system is the first of its kind in the high-leverage bitcoin futures market and, while still not perfect, offers a significant improvement over other risk-management strategies in similar markets.
